Personal Touch Financial Services is hiking its monthly fees for appointed representatives following a radical overhaul of its fee structure.
Under the current structure, IFA firms pay a flat monthly fee of £310 while mortgage, protection, equity release and private medical insurance adviser firms pay £125 a month. In addition, Personal Touch retains between 10 and 20 per cent of firms’ commission, depending on the type and quantity of business written.
From 1 November, all PTFS ARs will pay a monthly fee for the firm plus additional PI and FSA fees for each individual adviser.
Firms will be charged £265 a month, which includes £200 for member services and £65 for professional indemnity insurance.
Firms will be charged £102 a month for each individual mortgage, protection, equity release and PMI broker and £911 for each adviser that offers investment, pension, mortgage and protection advice.
For each individual investment and pension adviser, firms will be charged an additional £834, which is made up of a £462 member support charge, a £46 PI charge and £326 for FSA fees.
PTFS will continue to retain between 10 and 20 per cent of commission protection, equity release and PMI business, depending on the firm’s commission turnover, and will continue to retain around 5 basis points on mortgage commission.
A PTFS spokeswoman says: “This is our first fee review for nearly three years and despite the rapidly increasing cost of regulation the changes ensure we remain highly competitive.”
Which Network director Gary Watts says: “I think PTFS will lose a significant number of advisers because of this hike.”